Posted On Dec 12, 2024

Here's info to keep you in the loop!
 
What you need to know: 
The BoC lowered its interest rate 5 times this year from 5% to 3.25% (total 1.75% reduction). 
 
What Does This Mean?
Variable rate mortgages and lines of credit can expect lower payments.
Fixed rates are not directly impacted by this change.
 
How Much Will You Save?
For every $100k borrowed, 0.25% rate cut means $15/month (approx) savings.
Example: $400k mortgage means $420/month (approx) savings with 1.75% BoC rate reduction. 
 
What About Fixed Rates?
Fixed and variable rates work differently. 
The BoC rate cuts don't directly impact fixed rates in the same increments but we typically see changes around the same time.